and investment, we are able to capture many of the key empirical properties of Germany and Japan's postwar transitions … capital-output ratio, rising rates of investment and employment, and moderate rates of return to capital …

We embed the microeconomic decisions associated with investment under uncertainty, capacity utilization, and machine … mean-preserving spread in the productivity of investment raises aggregate investment, productivity, and output. Increases … in uncertainty have important dynamic implications, causing sustained increases in investment and hours and a medium …

investment at the firm-level. A large body of recent empirical work attributes these findings to capital market imperfections … variables may appear as an explanatory variable for investment if they contain information about the expected marginal value of … capital. In this paper, we show how structural models of investment with costly external finance can be used to identify and …